Residential Construction

(1)

P

u

g

e

t

S

o

u

n

d

E

n

e

r

g

y

,

S

t

a

t

e

a

n

d

F

e

d

e

r

a

l

E

n

e

r

g

y

-

E

f

i

c

i

e

n

c

y

I

n

c

e

n

t

i

v

e

s

:

Residential Construction

King County Department of Development and Environmental Services (DDES) and the Department of Natural Resources and Parks (DNRP) Solid Waste Division GreenTools program have developed this tool to help facilitate and encourage your participation in Puget Sound Energy (PSE), state and federal incentive programs that promote energy efficiency and conservation in residential construction.

Energy-efficiency incentives for the following types of projects and the eligible incentive applicants are covered in this document.

Energy-efficiency incentives below for: Eligible applicant

1. Single family remodel ... Homeowners 2. New construction, single family ... Homeowners

3. New construction, single family, or 4 units or less ... Builders & Owner/Builders 4. New construction, multi-family (5 units or more) ... Builders

5. Retrofit, multi-family (5 units or more) ... Building owners

Many local jurisdictions also offer incentives, grants, and rebates to area residents. These financial incentives can be code or tax-based, or come in the form of cash paid for energy and conservation measures. Contact your local jurisdiction to find out about available resources in your area.

Additionally, you can also find special offers and rebates by entering your zip code in the ENERGY STAR® Special Offer and Rebate Finder webpage.

For questions, please contact Kinley Deller at [email protected] or 206-296-4434. For more about DDES green building programs, see www.kingcounty.gov/greenpermits or DDES Information Bulletin 55, Green Building and Low Impact Development.

1. Single family remodel – for Homeowners

Available rebates and tax credits

The table below outlines federal, state, and PSE remodeling incentives offered to homeowners and residential PSE customers. Incentive

Source Name

Incentive

Range Other Information

Appliances and Lighting

PSE Primary Refrigerator Replacement

$75 PSE residential electric customers qualify for a $75 rebate for the purchase of ENERGY STAR® CEE Tier 2 and 3 premium-efficient refrigerators from participating retail stores. Must show proof that old refrigerator was recycled.

PSE Secondary

Refrigerator Pickup

$30 + free pickup

PSE residential electric customers get free pickup and recycling of a secondary fridge or freezer.

PSE Premium-Efficiency Clothes Washer Rebate

$50 - $100 For premium efficiency clothes washers that meet WashWise program's energy and water efficiency standards. The rebate levels are based on increasing efficiency determined by Modified Energy Factor (MEF) and Water Factors.

PSE ENERGY STAR® CFL Lighting Rebate

$3 per CFL bulb Discounts and rebates for all ENERGY STAR® qualified CFL bulbs from participating retailers and showrooms, available for all PSE electric customers.

(2)

Incentive

Source Name

Incentive

PSE ENERGY STAR® Qualified Fixtures

Up to $12 Discounts and rebates for all ENERGY STAR® qualified fixtures from participating retailers and showrooms, available for all PSE electric customers.

Heating/Cooling

PSE Electric Storage Water Heater

$50 Must install equipment with an Energy Factor of 0.94 or higher, a minimum of 50-gallon rated capacity. Indirect water heaters do not qualify.

Federal Gas, Oil, Propane Water Heater

$300 Energy factor must be greater than or equal to 0.82, or a thermal efficiency of at least 90%. Expires 12/31/11.

PSE ENERGY STAR® Qualified Heat Pump Water Heater

$500 Must install ENERGY STAR® qualified equipment outside the conditioned living space.

Federal Electric Heat Pump Water Heater

$300 Energy factor must be greater than or equal to 2.0.

Expires 12/31/11. PSE Wastewater Heat

Recovery System

$250 Equipment must have an efficiency of 42% or greater, and be installed vertically. Must currently heat water with an electric water heater. Electric tankless water heaters are not eligible.

Federal Solar Water Heating 30% of the cost. Not subject to combined cap.

At least half of the energy generated by the qualifying property must come from the sun. System must be certified by the Solar Rating and Certification Corporation or a comparable entity. Heated water must be used in the dwelling and is not available for swimming pools or hot tubs. Must be placed in service before December 31, 2016. Applies to principal residences and second homes.

PSE Conversion to Air-Source Heat Pump

$1,500 Replace electric forced-air furnace with a qualifying air-source heat pump. Pre-approval required. Must install a heat pump with an ARI Certified, HSPF rating of 8.5 or higher and a SEER rating of 14 or higher. Cannot have an existing heat pump. Electric zonal customers are not eligible, and auxiliary heating sources do not qualify for an additional rebate.

PSE Air-Source Heat Pump $200-$350 $200 rebate for an 8.5 HSPF/14 SEER air-source heat pump or $350 for a 9.0 HSPF/14 SEER air-source heat pump. Equipment must be AHRI performance certified. Auxiliary heating sources do not qualify for additional rebates.

PSE Heat Pump Sizing and Lock-out Control

$300 Must provide PSE sizing documentation completed by a qualified contractor. New air-source heat pumps must have a HSPF of 8.5 and 14 SEER. Existing air-source heat pumps more than 12 years old are not eligible. Lock-out control for auxiliary heat must be set to 40 degrees F.

Federal Air Source Heat Pumps

$300 Different requirements for split systems (HSPF rating of 8.5 or higher, EER greater than or equal to 12.5, and a SEER rating of 15 or higher) and package systems (HSPF rating of 8.0 or higher, EER greater than or equal to 12, and a SEER rating of 14 or higher). Not all

ENERGY STAR® products will qualify. Expires 12/31/11.

PSE Energy Efficient Ductless Heat Pump

$1,200 Equipment must be AHRI certified, use inverter technology and be a minimum of 1.0 ton. Customers must use electric resistance heat as primary heating source, and must install at least one unit in the main living area of the home.

(3)

Source Name Range Other Information PSE ENERGY STAR®

Qualified Geo-Thermal Heat Pump

$1,500 Must install ENERGY STAR® qualified equipment. Cannot have an existing geothermal heat pump installed, and auxiliary heating sources do not qualify for additional rebates.

Federal Geo-Thermal Heat Pump

30% of the cost. Not subject to combined cap.

Different criteria for closed and open loop and direct expansion. Must be placed into service before December 31, 2016. Applies to principal residences and second homes.

Federal Biomass Stove $300 Thermal efficiency rating of at least 75% as measured using a lower heating value. Expires 12/31/11.

PSE ENERGY STAR® Natural Gas Furnace

$100 Purchase of a new ENERGY STAR® qualified natural gas forced-air furnace and installed as the primary heat source. Must have an AFUE rating of 90% or higher.

Federal Natural Gas or Propane Furnace

$150 AFUE must be greater than or equal to 95. Not all ENERGY STAR® products will qualify. Expires 12/31/11.

PSE Natural Gas Conversion

Up to $3,950 Up to a $3,950 rebate to switch your home and water heating source to natural gas

Federal Oil Furnace $150 AFUE must be greater than or equal to 95. Not all ENERGY STAR® products will qualify. Expires 12/31/11.

PSE ENERGY STAR® Qualified Boiler

$350 Must have an AFUE rating of 95% or higher.

Federal Gas, Propane or Oil Hot Water Boiler

$150 AFUE must be greater than or equal to 95. Not all ENERGY STAR® products will qualify. Expires 12/31/11.

Federal Central Air Conditioning

$300 Must meet highest tier standards set by CEE as of January 1, 2009. Different requirements for split systems (SEER greater than or equal to 16, EER greater than or equal to 13) and package systems (SEER greater than or equal to 14, EER greater than or equal to 12). Not all ENERGY STAR products will qualify. Expires 12/31/11.

Federal Advanced Main Air Circulating Fan

$50 No more than 2% of furnace total energy use. Additional specifications apply. Expires 12/31/11.

PSE Fireplace Rebate $200 Equipment must meet Canadian P4FE of 70% or better, be direct vent, have electronic ignition, and be installed in main living area of the home.

Envelope

PSE Insulation/ Ductwork 50% of cost, up to $1,400

Rebates are available for customers who heat their homes with natural gas or electricity provided by PSE. 50% of cost (up to $200) for duct insulation, free duct sealing (for qualifying customers); and 50% of cost (up to $400) for floor, wall and attic insulation each. Must be installed by an authorized independent contractor.

Federal Insulation 10% of cost, up to $500 cap

Typical bulk insulation products may qualify: batts, rolls, blow-in fibers, rigid boards, expanding spray and pour in place. Products that air seal may also qualify as long as they come with a Manufacturers Certification.

Expires12/31/11. Federal Exterior Windows and

Skylights

10% of cost, up to $200 cap

Not all ENERGY STAR® windows and skylights qualify. U factor and SHGC must be less than or equal to 0.30.

Expires 12/31/11. Federal Storm Windows 10% of cost, up

to $200 cap

Must meet IECC in combination with the exterior window over which it is installed for the applicable climate zone and have U-factor and SHGC of 0.30 or below. Expires

(4)

Incentive

Source Name

Incentive

Federal Exterior Doors 10% of cost, up to $500 cap

Not all ENERGY STAR® doors qualify. U factor must be less than or equal to 0.30, SHGC must be less than or equal to 0.30. Expires 12/31/11

Federal Storm Doors 10% of cost, up to $500 cap

In combination with a wood door assigned to a default factor by the IECC, and does not exceed the default U-factor. Expires 12/31/11.

Federal Metal & Asphalt Roofs 10% of cost, up to $500 cap

Metal roofs with appropriate pigmented coatings and asphalt roofs with appropriate cooling granules that also meet ENERGY STAR® requirements qualify. Expires

12/31/11. Energy Generation

Federal Photovoltaic Systems 30% of the cost. Not subject to combined cap.

Must provide electricity for the residence and meet applicable fire and electrical code requirements. Must be placed in service before December 31, 2016. Applies to principal residences and second homes. Rentals do not qualify. Includes solar portion of solar fans.

Federal Residential Small Wind Energy Systems

Must have nameplate capacity of no more than 100 kW. Must be placed in service before December 31, 2016. Applies to principal residences and second homes. Rentals do not qualify.

Federal Residential Fuel Cell and Microturbine System 30% of the cost up to $500 per 0.5 kW of power capacity

Must have capacity of at least 0.5 kW and efficiency of at least 30%. Must be placed in service before December 31, 2016.

State State Bill 5101: Washington Renewable Energy Production Incentives $0.12/kWh - $1.08/kWh, capped at $5,000 per year.

Adjusting scale production incentive for solar thermal, photovoltaics, wind power or anaerobic digesters to produce power between July 1, 2005 and June 30, 2020. Incentives depend on project type, technology type, and where the equipment was manufactured.

State State Bill 6170: Washington Renewable Energy Sales Tax Incentive

100% sales tax exempt

Tax does not apply to the sales of equipment used to generate electricity using fuel cells, wind, sun, biomass energy, tidal or wave energy, geothermal, anaerobic digestion or landfill gas. Expires June 30, 2013.

Other

PSE ENERGY STAR® Manufactured Home Rebate

$150 or $300 Rebate for purchase of a new ENERGY STAR® qualified manufactured home. $150 with PSE-served natural gas heating and $300 with PSE-served electric heating.

PSE HomePrint Home Performance Evaluation

Free FREE home performance evaluation provided by an independent HomePrint-certified specialist. Receive on-site installation of FREE compact fluorescent light bulbs.

Eligibility Requirements and Recent Changes

On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This law extends the tax credits for energy efficiency into 2011, BUT at lower levels. The levels revert back to those in effect in 2006 and 2007, which were 10% of the cost of the improvement, up to $500, with a $200 max for windows, and several other set maximums. There is currently a $500 lifetime limit. If you got over $500 in these tax credits from 2006 - 2010, you are not eligible for anything more. Eligibility varies by rebate.

Washington State renewable energy production incentives are available for residential solar thermal electric, photovoltaics, wind and anaerobic digestion systems generating power between July 1, 2005 and June 30, 2020. Off-grid residences are not eligible. PSE energy-efficiency incentives and rebates are available to residential customers within a PSE service area.

(5)

2. New construction, single family – for Homeowners

The table below outlines federal and state new construction incentives offered to homeowners. Homeowners that are also acting as the builder should reference Section 3 “New construction, single family, or 4 units or less – for Builders” as these incentives also apply to individuals owning property and acting as their own general contractor.

Incentive

Source Name

Incentive

Heating/Cooling

Federal Geo-Thermal Heat Pump

Different criteria for closed and open loop and direct expansion. Must be placed into service before December 31st, 2016. Applies to principal residences and second homes.

Federal Solar Water Heating 30% of the cost. Not subject to combined cap.

At least half of the energy generated by the qualifying property must come from the sun. System must be certified by the Solar Rating and Certification Corporation or a comparable entity. Heated water must be used in the dwelling and is not available for swimming pools or hot tubs. Must be placed in service before December 31, 2016. Applies to principal residences and second homes.

Energy generation

Federal Photovoltaic Systems 30% of the cost. Not subject to combined cap.

Must provide electricity for the residence and meet applicable fire and electrical code requirements. Includes solar portion of solar fans. Applies to principal residences and second homes. Must be placed in service before December 31, 2016.

Federal Residential Small Wind Turbines

Must have nameplate capacity of no more than 100 kW. Must be placed in service before December 31, 2016. Applies to principal residences and second homes.

Federal Residential Fuel Cell and Microturbine System 30% of the cost up to $500 per 0.5 kW of power capacity

Must have capacity of at least 0.5 kW and efficiency of at least 30%. Must be placed in service before December 31, 2016.

State State Bill 5101: WA Renewable Energy Production Incentives $0.12/kWh - $1.08/kWh, capped at $5,000 per year.

State State Bill 5101: Washington Renewable Energy Production Incentives $0.12/kWh - $1.08/kWh, capped at $5,000 per year.

Eligibility Requirements

The incentives listed above are available to residential homeowners.

Washington State renewable energy production incentives are available for residential solar thermal electric, photovoltaics, wind and anaerobic digestion systems generating power between July 1, 2005 and June 30, 2020. Off-grid residences are not eligible.

(6)

3. New construction, single family, or 4 units or less – for Builders

The table below outlines new construction PSE incentives offered to residential builders. PSE incentives also apply to owner/builders, defined an owner/builder as a person who owns the property and acts as their own general contractor on the single-family home they are building or does the work themselves on a project.

Incentive

Source Name

Incentive

Range Other Information / Qualifications Appliances and Lighting

PSE ENERGY STAR® Refrigerator

$35 Any style, with or without an ice maker that exceed the federal minimum standard for energy efficiency at 25% or more.

PSE ENERGY STAR® Clothes Washer

$50 or $100 Tiered incentives: $50 for MEF of 2.2-2.45, or $100 for MEF of 2.46 or higher.

PSE ENERGY STAR® Qualified CFL Fixtures

$20 per fixture up to $800

Instant incentive at point of purchase at participating showrooms and distributors. Limited to 40 fixtures and five porcelain sockets per home, Linear applies to decorative only.

PSE ENERGY STAR® Qualified CFL Bulbs

$4 per bulb Instant incentive at point of purchase at participating showrooms and distributors. Limited to 100 bulbs per home, and must be installed in PSE’s residential electric service area. No charge to customer for direct install.

PSE ENERGY STAR® Pin-Based Indoor Light Fixture

$20 per fixture up to $800

For ENERGY STAR® CFL fixtures. Instant incentive per fixture must be installed in PSE’s residential electric service area. Limited to 40 fixtures per home.

PSE PSE Advanced Lighting Package (ALP 80 Program)

$300 Instant incentive at point of purchase at participating showrooms and distributors. Must be Energy Star qualified fixtures. Installation must meet the 80 % requirement of the Northwest Advanced Lighting Package and be installed in PSE’s residential electric service area.

Heating/Cooling/Ventilation PSE Natural Gas Water

Heater

$40 or $100 $100 for a .67 energy factor or higher, $40 for a .62 - .66 energy factor. Must have a capacity of 20 – 100 gallons of storage with a maximum input of 75,000 BTU / hour.

PSE Natural Gas Tankless On-Demand Water Heater

$150 Must have an energy factor of 0.82 or higher.

PSE ENERGY STAR® Natural Gas Furnace

$250 or $350 $350 for a 90 - 94 percent AFUE, $250 for a 95 percent AFUE or higher. Must be the primary source of heat.

PSE Air Source Electric Heat Pump

$200 or $350 $350 for a certified HSPF of 9.0 or higher and SEER of 14.0 or higher, or $200 for a certified HSPF of 8.5 or higher and SEER of 14.0 or higher.

PSE Duct Sealing (associated with natural gas furnace performance testing)

$500 per installation address

To qualify, natural gas furnace must be the primary source of heat and natural gas furnace must be 90% efficient or higher. Insulation must be R-8 (ducts inside heated space are exempt). Sealing - Mastic (tapes not allowed). Maximum leakage measures less than 0.06 CFM per sft. or 75 CFM total at 50 Pa. Applies to

qualified Northwest ENERGY STAR® homes, or provide utility with documentation from a certified performance tester. Homes must be permitted before 1/1/2011 to qualify.

(7)

Source Name Range Other Information / Qualifications PSE ENERGY STAR®

Whole House Fan

$40

PSE Ducts in Conditioned Space with

Performance Testing

$300 per installation address

All ductwork must be inside the heated space (exemption may apply to return air duct). Applies to qualified

ENERGY STAR® homes, or provide utility with documentation from certified performance tester. Must meet ENERGY STAR® Homes Builder Option Package 1.

Other

PSE ENERGY STAR® Qualified Home Bonus

$50 or $100 Home must be built by an ENERGY STAR® builder and be 3rd party verified and qualified. To receive the bonus PSE has to acquire savings from at least one measure in the home. Homes built in PSE’s natural gas service area receive $50 instant bonus, homes built in PSE’s electric service area get $50 instant bonus, and homes in PSE’s combined service area receive $100 instant bonus.

PSE Eligibility Requirements

PSE incentives apply to single-family, detached housing and any attached housing with four units or less. Apartment buildings are not eligible.

For more information visit PSE’s Single Family New Construction Incentives page:

(8)

4. New construction, multi-family (5 units or more) – for Builders

Available PSE rebates

The following incentives are available for multi-family builders during the design and construction period, prior to occupancy.

Name Incentive Range

Appliances and Fixtures

In-Unit ENERGY STAR® qualified Clothes Washers $50 - $100 each

In-Unit ENERGY STAR® qualified Refrigerators $50 each

ENERGY STAR® qualified Hardwired CFL Fixtures $20 each

Corridor Lighting Reduction $0.015/sqft per % improvement

Bi-Level Stairwell Lighting $70 per fixture per landing

Garage Lighting Reduction $0.003/sqft per % improvement

Garage CO Demand Control Ventilation with VFD Fan Control $320/hp

Water-Efficient Showerheads $5 each

Heating/Cooling

Condensing Water Heater $0.040/sqft

In-Unit Package Terminal Heat Pump $300 - $400/residential dwelling unit

Heat Pumps in Common Area $0.42/sqft common area

Heat Recovery in Common Area (electric) $0.10 - $0.33/sqft common area

Heat Recovery in Common Area (gas) $0.18 - $0.32/sqft common area

Condensing Boiler $0.129/sqft

Hydronic Heat Using Condensing Boiler $0.05/sqft

Hydronic Heat Using Condensing Water Heater $0.04/sqft

Drain Water Heat Recovery $183/unit

Envelope

Windows (with electric heating systems) $1.00/sqft of glazed area

Multi-family projects include apartments, townhomes, condominiums, assisted living residences and similar structures with five or more attached dwelling units. Incentives designated (electric) are for buildings within PSE’s electrical service area. Incentives designated (gas) are for buildings within PSE’s gas service area. Measures must be installed by a qualified contractor. Incentive offers end December 31, 2011.

More information is available in the PSE Energy Efficiency Services Brochure::

(9)

5. Retrofit, multi-family (5 units or more) – for Building owners

Available PSE rebates

The following incentives are available for multi-family building owners in all of PSE’s electric service area to improve the energy efficiency of existing buildings with five or more attached units.

Name Incentive Range Other Information

Appliances and Lighting

Tenant Controlled Light Fixtures $20 per fixture

Tenant Controlled Light Socket Conversion $4 per fixture Converts screw-in lighting sockets to plug-in type.

Common Area Lighting Incentives vary depending on fixture/bulb replacement type.

In Unit Compact Fluorescent Bulbs No cost Direct install, no cost In Unit ENERGY STAR® qualified Clothes

Washers

$50 or $100 per unit

$50 for MEF of 2.2 to 2.45 and WF of 4.5 or less; $100 for MEF of 2.46 or higher and WF of 4.0 or less

In Unit ENERGY STAR® qualified Refrigerators $50 per unit

In Unit Water Heater Tank Pipe Wrap Free installation Direct install by PSE, no cost In Unit Efficient Showerheads Free installation Direct install by PSE, no cost

Heating/Cooling

ENERGY STAR® Gas Furnace $250 per unit Replacing existing space heat boiler and domestic water boiler

Tankless Water Heater (gas) $150 per unit

Water Heater (electric) $50 Must have 0.95 or higher energy factor

Envelope

Energy Efficient Window and Sliding Glass Door Replacement (with electric heating systems)

$5 or $7 per sqft $5 to replace single or double-pane with high efficiency double-pane with a U-value of 0.30 or less. $5 to replace double-pane to high efficiency triple-pane with a U-value of 0.25 or less. $7 into replace single-pane with high efficiency triple-pane with a U-value of 0.25 or less.

Energy Efficient Window and Sliding Glass Door Replacement (with gas heating systems)

$4 per sqft $4 to replace single-pane with either high efficiency double-pane with a U-value of 0.30 or less or triple-pane with a U-value of 0.25 or less.

Attic Insulation $0.50 per sqft Gas or electric heating systems qualify. Floor Insulation $0.50 per sqft Gas or electric heating systems qualify. Wall Insulation $0.65 per sqft Existing R-values must be below required

levels and units must have electric heating system.

Other

Solar Pool Heater Incentive amount for solar pool heater based on a PSE analysis. Existing pool heater must be operational.

Multifamily projects include existing apartment and condominium buildings with 5 or more attached units. An energy audit must be performed by a PSE representative to qualify and an authorized agreement must be in place prior to installation of measures.

More information is available in the PSE Energy Efficiency Services Brochure: